The market edged higher at the open despite a weak close on Wall Street but wavered after the national account showed that Australia's economy had grown by slightly less than expected last quarter.

A late recovery saw the All Ordinaries rise 0.4 of a per cent, to 4,528. And the ASX200 closed with a similar gain at 4,520.

Bank shares were in focus after the Reserve Bank cut the official interest rate yesterday. NAB was the first of the big four lenders to cut its standard variable mortgage and business rates by 20 basis points. Its shares closed up a quarter of a per cent.

Late in the day the Commonwealth and Westpac both announced they're also cutting their mortgage rates by the same amount. They're all holding back some of the 25 basis point cut from the RBA. The Commonwealth Bank shares rose 1 per cent and Westpac added 0.6 of a per cent. ANZ shares rose three-quarter of a per cent, its rates decision comes on Friday week.

Retail shares also gained a day after the rate cut; David Jones rose 2 per cent and Myer rose 3.75 per cent.

In other economic news, the performance of services index by the Australian Industry Group rose slightly last month but the key services industry remains deep in contraction.

And shares in the Ten Network were placed on a trading hold until Friday, pending an announcement on a possible capital raising. Ten shares closed down 3 per cent yesterday at 32.5 cents; they're down 59 per cent so far this year.

To commodity trade now, and Spot Gold slightly higher at $US1702 an ounce. West Texas crude oil steady at $US88 a barrel. And tapis crude Oil is worth $US115.40 a barrel.

The Australian dollar remains high despite yesterday's rate cut. A short time ago it was buying 104.75 US cents.